the budget crisis gets personal

Governor Gregoire's 2009 budget proposal includes a six percent across-the-board cut at the community college level. Since last summer, my wife had been working at Pierce College in Lakewood, assisting adult students in their transition from GED programs to a college education. We had held off major financial changes this winter, knowing that although she had survived the first round of cuts, her job status in June was iffy.

Turns out it was even iffier than we thought. Yesterday she was given her walking papers, since her position has been eliminated as of January 16th. She's over the initial shock, frustrated by having to look for new employment, more irritated than anything, as is her soon-to-be-slammed supervisor.

Our plan to help the U.S. out of the recession was to purchase a home in December. Not anymore. But we can't complain too loudly. We can scale back our dreams a bit, pinch a few more pennies, and weather the storm. And I still have a job in the Olympia School District.

For now.

the triumph of Ruth Bennett

Remember Ruth Bennett? She was the Libertarian who ran against Gregoire and Rossi back in 2004. She earned far more votes than the margin of victory, and probably ultimately swung the election for Gregoire, but disappeared off the political radar after that.

Turns out she had been here all along.

Gregoire told The Olympian's editorial board Friday that some proposed cuts — such as closing a youth-offender camp at Naselle and shuttering a Yakima facility for the developmentally disabled — were "an opportunity" to do the right thing that might not be politically possible in richer times.

Both facilities are under-used by departments that have too little demand to justify the operations.

"So it is a time to rethink government," Gregoire said.

The governor also said she has asked her Cabinet leaders to look again at how they do business, and she said she wants to look at the state's 400 boards and commissions with an eye toward picking out only boards that are essential.

To the eye and ear she's Chris Gregoire, but the discerning mind is not fooled by the clever disguise.

Congratulations, Ruth Bennett, on winning when it really counted.

everybody hurts: the Gregoire Budget

Governor Gregoire has released her budget recommendations for the upcoming legislative session. Cue Michael Stipe, singing on a freeway:

Gov. Christine Gregoire released an austere state budget proposal this morning that slashes more than $3.5 billion in funding for public schools, higher education, social services and other areas to help close the biggest budget shortfall in state history.

Gregoire proposes filling the gap, projected at more than $5 billion, by making scores of cuts and using untapped pots of money, including $600 million from the state rainy-day fund.

In addition, the governor is banking that the federal government will send Washington at least $1 billion as part of an economic stimulus package.

Among the cuts proposed by Gregoire: $682 million in pay increases for state workers and teachers; $500 million in health care for children, the poor and the disabled; and $178 million in funding for Initiative I-728, which was approved by voters in 2000 to reduce class sizes in public schools.

The proposed budget also would change how state pensions are funded, and reduce contributions to the worker-retirement programs by $400 million over the next two years. No cut was too small to pursue. The governor proposes closing 13 state parks to save $5.2 million, shuttering the visitors center at the state Capitol to save $1.7 million and eliminating toll-free numbers to the state Department of Revenue to save $260,000.

The governor said the cuts were necessary, but that she "hates" the budget and expects legislators and lobbyists will as well. "There's something in there for everybody not to like."

I'd strongly recommend reading the entire recommendation [pdf] to get a sense of the uphill battle ahead.

I'll post analysis later this week.

(Oh, and it almost goes without saying that "advocacy groups" are upset.)

Added: And then there's Ryan's take.

close a few loopholes and balance the budget?

$53 billion in tax loopholes offer a tantalizing option for Governor Gregoire: raising taxes without technically raising taxes.

If state lawmakers wanted to raise money by closing tax exemptions, there are 567 to choose from. Taken together, the tax breaks cut $53 billion in potential revenues that the state might have received and $45 million more to local governments.

Of those exemptions, 147 of have been added to the tax rolls since the 2001 legislative session.

Of the grand total, 158 were exemptions to the retail sales and use taxes. These include exemptions on sales of food, medicines and the like, which are worth $30 billion in the 2007-09 budget cycle, according to the Department of Revenue's Tax Exemptions 2008 guide. One hundred and three others are property-tax exemptions worth $9 billion.

Of course, every loophole has a lobbyist, meaning that the legislature, until now, has closed hardly any of 'em.

Most tax-repeal recommendations from 2007 were ignored by the Legislature. Those included elimination of a $2 million break for horse racing and $2 million for club membership dues and fees. Also ignored was a recommendation to re-examine a $47 million break given to nonprofit hospitals and $17 million to nonsectarian organizations.

Lawmakers did manage to get rid of one exemption in 2007. That was a temporary tax break for beef producers enacted after the mad-cow disease scare a few years ago, and lawmakers did not extend its life.

Anyhow, The Olympian predicts a shocking budget recommendation from the Governor to match this week's Arctic Blast.

She is scheduled to announce a deep-cutting budget proposal Thursday that could lop $1 billion from K-12 schools, cut jobs or reduce the hours for many of Washington's 110,000 state employees, and shear away big parts of the social safety net.

Gregoire swore off tax increases while on the campaign trail this year, and the recently re-elected Democrat has shown no sign of relenting on that point — even with a budget shortfall she hints could hit $6 billion for the 2009-11 cycle. Even she says it will be "ugly" and that she will hate it.

How long until we're on a four-day school week?